Activision (NASDAQ: ATVI) really rocked the house with its latest earnings report. Yeah, you knew I was going to fit the word "rock" in there somewhere. Can't help it -- the Guitar Hero franchise is really something, and it's helping drive incredible revenues for the software publisher.

The top line heeded the call to duty and simply exploded to the upside during the fiscal third quarter, increasing an amazing 80% to $1.48 billion. On an adjusted basis, earnings were 90 cents per share; in the previous year's quarter, Activision booked 48 cents, so this is great growth. Besides Guitar Hero 3, the company counts on the Call of Duty, Spider-Man, and Tony Hawk franchises to drive performance. Soon, it'll be leaning on online phenomenon World of Warcraft to do some damage in the marketplace, as it is merging with Vivendi Games.

Activision is taking full advantage of the new console cycle, and is really doing well with its franchises; compare this to THQ (NASDAQ: THQI), which had a terrible quarter. I continue to like the Activision story, and I continue to hold the stock. Along with Take-Two (NASDAQ: TTWO) and Electronic Arts (NASDAQ: ERTS), Activision is poised to benefit from further increases in the installed user base of the new consoles from Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo.

Disclosure: Steven Mallas owns Activision and Take-Two, and is looking at Microsoft and Nintendo as possible buys after this post.

Too focused on elections and their effect on the market this November 7th? Not Jim Cramer, who's already looking ahead with what he calls a "holiday play" that is good regardless of wins the polls. Cramer thinks that it's going to be an Activision, Inc. (NASDAQ:ATVI) Christmas. The video game company is #2 behind ERTS. The company's blowout numbers didn't affect the stock because they had already guided up. Think video games are too juvenile in which to invest? Then, says Cramer, think of them as long interactive movies.

This will be a big season for video game consoles, with Sony PS3 coming out November 17 and Nintendo's Wii out on November 19. And, don't leave out the Xbox 360 from Microsoft Corporation (NASDAQ:MSFT). He has recommended GameStop Corp. (NYSE:GME) much lower, but says ATVI is the play. Tomorrow ATVI releases "Call of Duty 3," and Cramer though this will be a huge driver and it is available for Xbox 360 and PS3. The "Guitar Hero" sequel just hit store shelves today, and the "Tony Hawk" game is also quite popular.

Never the buy-and-hold type, Cramer noted that buying ATVI is "risky investing" and you should remember to sell it going into the holidays. Cramer said even though he likes management, the company has a history of "lumpy quarters." He reminded investors to use limit orders and only buy later tomorrow.

He says this is a TRIPLE NO COAL IN YOUR STOCKING BUY.